Largest International Study on Entrepreneurship 2024/25: Moderate Startup Dynamics Offset by Resilience
Austria maintains stable entrepreneurial activity despite economic uncertainties. The country benefits from excellent infrastructure and support programs, while costs and uncertainty act as limiting factors.
Fewer Startups but Higher Success Rates
Despite challenging economic conditions, Austria’s entrepreneurial activity remains steady. While fewer businesses have been founded since 2020, those that do emerge demonstrate greater resilience and stability compared to similar economies. This trend suggests a growing focus on quality over quantity.
The Total Early Stage Entrepreneurial Activity (TEA) rate stands at 6.6%, indicating a slight increase in the number of individuals in the pre startup phase. Encouragingly, the rate of established businesses remains high at 7.9%, positioning Austria well above the European average.
"This stability underscores Austria’s role not just as a launchpad for startups but as a sustainable business environment that fosters long term growth," emphasised State Secretary Elisabeth Zehetner (BMAW) at the GEM launch event in Vienna.
Older, More Educated and Increasingly Sustainable Entrepreneurs
Austria’s entrepreneurial landscape is shifting. The average age of new entrepreneurs has risen to 42 years, reflecting a significant increase in senior entrepreneurship (55 plus age group). Entrepreneurs also possess higher educational qualifications than the general population.
While female entrepreneurship is on the rise, women still face greater challenges compared to men.
At the same time, sustainable entrepreneurship is gaining momentum. Austria ranks third globally among 56 countries in terms of sustainable business practices. “The latest GEM report highlights Austria’s strengths in fostering entrepreneurship even during turbulent times. However, it also reveals areas for improvement, particularly in financing, digitalisation and childcare support,” said Verena Eugster, Board Member of Junge Wirtschaft (WKÖ).
Austria’s Startups: Innovative with Untapped Spin Off Potential
Two out of three Austrian startups are innovation driven, with 20% operating as innovative niche players. However, there is untapped potential in spin offs and digital transformation, with concerns about data protection acting as a barrier.
"Startups and spin offs are crucial to Austria’s innovation ecosystem. In 2024, the FFG invested over €90 million in technology and innovation driven startups. This funding must be secured and expanded to further unlock Austria’s spin off potential," stated Dr. Henrietta Egerth, Managing Director of the Austrian Research Promotion Agency (FFG).
Entrepreneurial Environment: Strong Infrastructure, Rising Costs and Uncertainty
Austria’s infrastructure and support programs continue to rank among the best globally, placing second in the international GEM comparison.
"The GEM study confirms Austria’s leading position in Europe for startup support programs. As the federal development bank, aws directs approximately one third of its core financing budget toward startups, an essential factor in ensuring innovative companies can thrive in challenging times," said Bernhard Sagmeister and Gerfried Brunner, Managing Directors of Austria Wirtschaftsservice GmbH (aws).
Nevertheless, rising costs and uncertainty are slowing new business formation. While almost half of the population perceives startup opportunities, only 7.5% plan to start a business within the next three years, indicating persistently low startup activity.
"We are seeing a sharp rise in the fear of failure, particularly among those who recognise entrepreneurial opportunities," noted Christian Friedl, Lead Researcher of the Global Entrepreneurship Monitor Austria.
About GEM
Global Entrepreneurship Monitor (GEM) is the world’s largest comparative study on entrepreneurship, in which Austria has participated since 2012. The 2024/25 study covers 56 countries, including 21 from Europe.
The Austrian GEM report is based on a representative survey of 4,620 adults and additional expert assessments from 36 ecosystem stakeholders. The findings help identify trends, challenges and policy recommendations.
Partners: BMAW, WKÖ, BMK, aws, FFG, GIN, WKW, eXplore!, WU Wien, EY Austria, Joanneum Research, FH JOANNEUM
Access the full report at this link and the short version here.